Daily Prelims Notes 23 June 2024

Daily Prelims Notes

23 June 2024

1. Nalanda University | An ancient centre of learning

Sub: History

Sec: Art and Culture

About Nalanda University:

• Founded in the 5th century CE by Emperor Kumaragupta (Gupta Dynasty), Nalanda University, originally known as ‘Nalanda Mahavihara’, was the world’s first international residential school, predating Oxford University by approximately 500 years.

Features:

• It is a large Buddhist monastery in India’s ancient kingdom of Magadha (modern-day Bihar).
• Buddhist Foundations: Linked to the times of the Buddha, it thrived for 700 years, promoting diverse learning under esteemed scholars like Nagarjuna, Aryabhatta, Asnaga, Vasubandhu and Dharmakirti.
• Even though it taught about all sects of Buddhism, Mahayana Buddhism was the primary subject of instruction, although other secular disciplines like grammar, logic, epistemology, and science were also covered.
• The University had ten temples, meditation centres, and the world’s largest library, which was divided into three buildings: Ratnasagara (nine-story building), Ratnadadhi, and Ratnaranjaka, and housed not only religious manuscripts but also a vast collection of books on literature, astrology, philosophy, science, warfare, and other subjects.
• Famous scholars of Nalanda are Nagarjuna (Madhyamika Shunyavad) and Aryabhatta, the astronomer.
• There were lively arguments and debates going on. Harsha is supposed to have invited a thousand educated Nalanda monks to attend the Kanauj philosophical meeting.
• During King Harsha’s reign, Chinese traveller Hiuen Tsang visited Nalanda University and wrote a detailed account of the university. Hiuen Tsang attended university for two years.
• I-Tsing, a Chinese scholar, stated that Nalanda housed 2,000 students and was supported by money from 200 villages.
• A large number of students have come to study from China, Mongolia, Tibet, Korea, and other Asian countries.
• Archaeological evidence also indicates contact with the Indonesian Shailendra dynasty, one of whose kings built a monastery in the complex.
• In 1915, systematic excavations began, revealing eleven monasteries and six brick temples neatly arranged on grounds measuring 12 hectares (30 acres).
• A treasure trove of sculptures, coins, seals, and inscriptions have also been discovered in the ruins, many of which are now on display at the nearby Nalanda Archaeological Museum.

Rediscovery and Revival:

• The ruins were rediscovered in 1812 by Francis Buchanan-Hamilton and officially identified in 1861 by Sir Alexander Cunningham.
• Proposed by former President Dr. A.P.J. Abdul Kalam in 2006, the revival gained momentum with support from the Singapore government and East Asia Summit leaders.
  • The Nalanda University Act was passed in 2010, and the first batch of students enrolled in 2014.

New Campus and Master Plan:

• Prime Minister Narendra Modi inaugurated the new campus on June 19, 2024.
• 17 countries including Australia, China, Singapore, and South Korea have contributed to its establishment.
• The campus is designed by B.V. Doshi’s Vastu Shilpa Consultants, the ₹1,800 crore ($210 million) campus spans 485 acres with sustainable features like solar plants, water treatment, and recycling facilities.
  • It includes extensive green cover, water bodies, a Yoga Center, auditorium, library, and sports complex.

Governance and Academic Programs:

• The President of India serves as the Visitor, with Prof. Arvind Panagariya as Chancellor and Prof. Abhay Kumar Singh as Vice-Chancellor.
• Programs: Offers postgraduate and Doctoral programs in Buddhist studies, philosophy, literature, environmental studies, sustainable development, and international relations. Students from over 20 countries are currently enrolled.

Challenges and Controversies:

• Initial controversies included the appointment of Gopa Sabharwal as Vice-Chancellor and the subsequent resignation of Nobel laureate Amartya Sen and his successor George Yeo over autonomy concerns.
• The narrative of its decline is debated; some argue it was destroyed by Bakhtiyar Khilji, while others claim it suffered from long-term decline due to funding cuts and persecution by the Sena dynasty.
• Disputes over renaming Baktiyarpur Railway station, near the university, have arisen, with Bihar Chief Minister Nitish Kumar opposing changes, citing his birthplace.

Source: TH

2. The government enhances allocation for the Fertilizer Sector under the SIGHT Programme of the National Green Hydrogen Mission (NGHM)

Sub: Schemes

Sec: Sci

Context:

• Allocation for the fertilizer sector increased from 5.5 lakh tonnes per annum to 7.5 lakh tonnes per annum of Green Ammonia.

National Green Hydrogen Mission (NGHM):

• The National Green Hydrogen Mission (NGHM) aims to achieve a production capacity of 5 million tonnes per annum of Green Hydrogen by 2030.
• Initiated on January 4, 2023, with a budget of Rs. 19,744 crores, the mission aligns with India’s Aatmanirbhar (self-reliant) vision and global Clean Energy Transition goals.

Strategic Interventions for Green Hydrogen Transition (SIGHT) Programme:

• Aim of the programme:
  • Component I: It aims at providing electrolyzer manufacturing incentives with a total outlay of INR 4440 crore
  • Component II: It focuses on green hydrogen production with a financial outlay of INR 13050 crore.
• Implementing agency: The Solar Energy Corporation of India (SECI) would be the implementing agency responsible for the scheme’s execution.
• Under the NGHM, the Ministry of New & Renewable Energy (MNRE) issued guidelines for the SIGHT Programme, specifically Component II: Incentive for Procurement of Green Ammonia Production (Mode 2A) on January 16, 2024. This component targets the fertilizer sector.
• Bidding Process: The Solar Energy Corporation of India (SECI) released a Request for Selection (RfS) to choose Green Ammonia producers through a cost-based competitive bidding process.

Increased Demand and Amendment:

• Due to the growing demand for Green Hydrogen and its derivatives, particularly Green Ammonia in the fertilizer sector, MNRE has increased the allocation under Mode 2A by 2 lakh tonnes per annum.

Significance:

• Decarbonization: The mission aims to significantly decarbonize the economy and reduce dependence on fossil fuel imports.
• It positions India as a leader in Green Hydrogen technology and market, inspiring global clean energy initiatives.

About Green Ammonia:

• It is produced by using hydrogen from water electrolysis and nitrogen separated from the air.
• These are then fed into the Haber process (also known as Haber-Bosch) which is powered by sustainable electricity.
• In the Haber process, hydrogen and nitrogen are reacted together at high temperatures and pressures to produce ammonia, NH3.
• Green ammonia production is where the process of making ammonia is 100% renewable and carbon-free.
• It can be used in:
  • Fuel for engines such as locomotives and shipping, replacing diesel and marine fuel oil
  • Fuel source for electricity and power generation
  • Building block to make fertilisers for use in agriculture;
  • Feedstock for industrial and manufacturing applications ranging from water purification through to pharmaceuticals

Source: PIB

3. Where does India stand with respect to the G-7?

Sub: IR

Sec: Int groupings

The G-7 Summit 2024

Hosted by- Italy at Borgo Egnazia in the city of Fasano in Apulia (Italy).

Participants:

• G-7 Members: U.S., Canada, Germany, France, Japan, U.K., Italy
• Special Invitees: India, Algeria, Argentina, Brazil, Jordan, Kenya, Mauritania, Tunisia, Türkiye, UAE
• Organizations: African Development Bank, IMF, OECD, UN, World Bank
• Upcoming Summit: Scheduled for 2025 in Canada’s Alberta region, with potential changes in membership and leadership.

Summit Goals:

• Addressing differences between the Western nations and the rest of the world.
• Committing an additional $50 billion, utilizing frozen Russian funds.
• Hosting the “Energy for Growth in Africa” summit to promote clean energy investments.
• Global Issues: Tackling migration, climate change, and artificial intelligence challenges.
• Trade Practices: Condemning China’s coercive trade behaviours.
• Engagement with Global South: Discussing concerns through the “G-7 Outreach” program.

Importance of India:

• India is a significant member of the Global South and has hosted the “Voice of Global South” conference since 2023. It is also a member of the G-20 Troika, along with Brazil and South Africa.
• Economic Growth: Recognized for its steady growth during the global financial collapse.
• Diplomatic Interactions: Held discussions with leaders from the U.K., France, Germany, Japan, Italy, Ukraine, and a brief meeting with the U.S. President.

Historical Context and Evolution of G7:

• The G7 originally began as the Group of Six (G6) in 1975, consisting of the United States, France, Italy, Japan, the United Kingdom, and West Germany.
• Purpose: The primary aim was to address significant economic issues like inflation and the global recession that followed the Organisation of the Petroleum Exporting Countries (OPEC)’s oil embargo in 1973-74.
• Expansion: Canada joined the group in 1976, leading to its transformation into the G7, and Russia joined in 1997, temporarily expanding it to the G8; however it was excluded in 2014 following its annexation of Crimea.
  • Since 1981, the European Union has been involved in G7 meetings, represented by the Presidents of the European Council and the European Commission.
  • The EU participates in the group’s work but does not hold the rotating presidency.

Functioning of the G7:

• Membership criteria: No formal membership criteria exist, but the nations are typically wealthy democracies.
• Structure: The G7 lacks a formal institutional structure. It does not have a charter or a permanent secretariat.
• Presidency: The presidency of the G7 rotates annually among the member countries.
• The president of the country is responsible for setting the agenda of the summit and organising the meetings.
• Sherpas: These ministers or envoys prepare the groundwork for the summit through policy discussions and meetings.
  • Sherpas are responsible for overseeing the negotiations and drafting the Group’s final communiqué.
  • The process incorporates contributions from various tracks, including Political Directors, Foreign Affairs Sous-Sherpa (FASS) and the Finance-Deputies.

Future of the G-7:

• Criticism: Perceived as an elitist group, lacking inclusivity of major economies like China, India, and Brazil.
• Challenge from BRICS: BRICS expansion to include UAE, Saudi Arabia, Iran, Egypt, and Ethiopia poses a competitive threat.
• Effectiveness: Questions about its relevance given its limited impact on global conflicts and economic influence.

Source: TH

4. Are heatwaves natural disasters?

Sub: Geography

Sec: Climatology

Heatwaves in North India:

• North India is experiencing its longest heatwave in 15 years, with at least 100 deaths from heat-related illnesses reported from March 1 to June 18, likely under-reported.
• Discussions are ongoing about classifying heatwaves as a natural disaster.

Are Heatwaves a Natural Disaster?

• The National Disaster Management Act (NDMA) defines the roles of the Centre and States in disaster response.
• 12 disasters are currently eligible for state-backed compensation, including cyclones, drought, earthquakes, fire, flood, tsunamis, hailstorm, landslides, avalanches, cloudbursts, pest attacks, frost and cold waves, but not heatwaves.
• Special funds at the State and Centre levels are available for these disasters.

The 15th Finance Commission’s Role:

• The 15th Finance Commission oversees revenue sharing between the Centre and States.
• It has so far not expanded the list of natural calamities eligible for SDRF and NDRF funding.
• States can use up to 10% of their annual SDRF allocation for disasters not on the official list, including heatwaves.
• The 16th Finance Commission may review new requests to include heatwaves.

Heatwave Deaths in India:

• Heatwave deaths declined from 1,127 in 2017 to 374 in 2021.
• 33 deaths were reported in 2022, none in 2023, and at least 100 in 2024.
  • The data was collected from the Zonal Integrated Police Network and the Ministry of Home Affairs.
• The maximum number of deaths are reported from Uttar Pradesh (37), Bihar (17), Rajasthan (16), and Odisha (13), according to the National Heat-Related Illness and Death Surveillance by the National Centre for Disease Control (NCDC).
• Heatwaves are becoming more frequent and longer.
• Classification of heatwave deaths is challenging due to co-morbidities and varying definitions of a heatwave.
• Andhra Pradesh, Odisha, Telangana, Gujarat, and Rajasthan report the most heatwave casualties.

State Measures Against Heatwaves:

• States, districts, and cities are developing Heat Action Plans (HAPs) to address rising heatwave frequency.
• The NDMA and India Meteorological Department are collaborating with 23 States on HAPs.
• HAPs include a region’s heat profile, past heatwave events, temperature trends, vulnerability assessments, and response plans.

About NCDC:

• NCDC had its origin as Central Malaria Bureau, established at Kasauli (Himachal Pradesh) in 1909 and following expansion was renamed in 1927 as the Malaria Survey of India.
• The organization was shifted to Delhi in 1938 and called as the Malaria Institute of India (MII).
• In view of the drastic reduction achieved in the incidence of malaria under National Malaria Eradication Programme (NMEP), Government of India decided to reorganize and expand the activities of the institute to cover other communicable diseases.
• The institute was established to function as a national centre of excellence for control of communicable diseases.
• The function of the institute also included various areas of training and research using multi-disciplinary integrated approach.
• The Institute has its headquarters in Delhi and has 8 out-station branches located at Alwar (Rajasthan), Bengaluru (Karnataka), Kozikode (Kerela), Coonoor (Tamil Nadu), Jagdalpur (Chattisgarh), Patna (Bihar), Rajahmundry (Andhra Pradesh) and Varanasi (Uttar Pradesh).

Source: TH

5. Number of warm nights in Indian cities leapfrogged 32% during last decade due to climate change: Global report

Sub: Geography

Sec: Climatology

Increase in Warm Nights in India Due to Climate Change:

• Over the last decade, India has experienced a critical increase in warm nights with minimum temperatures due to rising climatic impacts.
• Jalpaiguri in northern West Bengal, along with cities in Assam, is the most impacted.
• A study covering around 300 Indian cities found a 32% increase in hot nights, averaging 718 nights from 2014-2023 where temperatures reached 25°C or above.
• Without climate impact, this number would be significantly lower, around 543-175 nights.

What is a ‘warm night’?

• A warm night is when the minimum temperature is 4.5 to 6.4°C above normal; a severe warm night exceeds this by more than 6.4°C. The day temperature must be 40°C or higher for these conditions.
• Northwest India is experiencing a significant rain deficit and consistently high temperatures. Increased night temperatures are causing more heat stroke cases, as people find no respite from the heat.

Climate Change Impact:

• Climate change has significantly influenced night-time temperatures above 25°C in India, especially in West Bengal and Assam.
• Cities like Jalpaiguri, Guwahati, Silchar, Dibrugarh, and Siliguri experienced 80-86 additional hot nights annually due to climate change.
• The urban heat island effect contributes to higher night-time temperatures due to the retention of heat by high-rise buildings and concrete.

What us Urban Heat Island effect?

• Urban heat island may be defined as the local and temporary phenomenon in which certain pockets within a city are experiencing higher heat load than its surrounding area.
• This rise of heat basically happens due to buildings and houses of cities made up of concrete where the heat is trapped and not able to dissipate easily.
• Urban heat island is basically induced due to trapped heat between establishments made up of concrete.
• The temperature variation can range between 3 to 5 degrees Celsius.

Regional and National Trends

• The impact of climate change has added 50-80 hot nights annually in cities across several states including Kerala, Karnataka, Maharashtra, Tamil Nadu, Punjab, Jammu and Kashmir, Andhra Pradesh, West Bengal, and Assam.
• Jalpaiguri had the highest number of unusually hot nights (868) during 2014-2023, followed by Guwahati, Silchar, Dibrugarh, and Siliguri.
• Major cities like Chennai, Kolkata, Mumbai, and others experienced significant increases in hot nights.

Challenges and Observations

• The increasing trend of hot nights poses challenges for sleep and health, particularly for vulnerable populations without adequate cooling mechanisms.
• Scientists highlight that the trend is exacerbated by air pollution and urbanization, which trap heat and prevent cooling at night.
• Recent records for night-time heat were broken in cities like Delhi and Alwar, with temperatures reaching unprecedented highs.
• Experts emphasize the severe consequences for human health and the need for immediate action to mitigate these impacts.

Source: DTE

6. The Telecommunications Act 2023

Sub: Polity

Sec: Legislation in news

Context:

• The Union Government on 21.06.2024, issued Gazette Notification for enforcing sections 1, 2, 10 to 30, 42 to 44, 46, 47, 50 to 58, 61 and 62 of the Telecommunications Act, 2023.

The Telecommunications Act, 2023:

• The Telecommunications Act, 2023 aims to amend and consolidate the law relating to development, expansion and operation of telecommunication services and telecommunication networks; assignment of spectrum and for matters connected therewith.
• The Telecommunications Act, 2023 also seeks to repeal existing legislative frameworks like Indian Telegraph Act,1885 and Indian Wireless Telegraph Act, 1933 owing to huge technical advancements in the telecom sector and technologies.
• Guided by the principles of Samavesh (Inclusion), Suraksha (Security), Vriddhi (Growth), and Tvarit (Responsiveness), the Act aims to achieve the vision of Viksit Bharat (Developed India).
• The Telecommunications Act, 2023, was passed by the Parliament in December 2023, received the assent of  the President of India on 24.12.2023 and was published in the official Gazette on 24.12.2023.

Salient Features of the Act:

• The salient features of the sections that have been brought into force with effect from 26.06.2024:

7. Rotavirus vaccine: tortured data analyses raise false safety alarm

Sub: Science and tech

Sec: Health

Context:

• A recent study has revealed that Rotovac, an indigenous rotavirus vaccine by Bharat Biotech can lead to bowel complications.

More on news:

• According to the study, the vaccine which is a part of the government’s immunization programme, has been associated with an increased risk of intussusception in infants.
• 0.5 billion doses of Rotovac have been used globally to date.

Bharat Biotech Reaction:

• Bharat Biotech dismissed the study and stated that the vaccine’s safety had been rigorously evaluated.

Virologist Dr Gagandeep Kang study:

• The main objective was to monitor Bharat Biotech’s rotavirus vaccine (Rotavac) for any increased risk of intussusception after any dose of the vaccine.
• Three doses of the vaccine are administered at 6, 10, and 14 weeks of age.
• The vaccine was introduced into the universal immunization programme in a few States in 2016 and across India in 2019.

About Rotavirus:

• Rotaviruses are the most common cause of diarrhoeal disease among infants and young children. Nearly every child in the world is infected with a rotavirus at least once by the age of five.
• Immunity develops with each infection, so subsequent infections are less severe.
• Adults are rarely affected.

About Rotavirus Vaccine:

• The rotavirus vaccine is a vaccine used to protect against rotavirus infections, which are the leading cause of severe diarrhea among young children.
• The vaccines prevent 15–34% of severe diarrhea in the developing world and 37–96% of the risk of death among young children due to severe diarrhea.
• Rotavirus vaccine is administered by putting drops in the child’s mouth.
• Babies should get 2 or 3 doses of rotavirus vaccine, depending on the brand of vaccine used.
• The first dose must be administered before 15 weeks of age.
• The last dose must be administered by 8 months of age.

What is Intussusception?

• Intussusception is a serious condition where one part of the intestine slides into the next, potentially leading to bowel gangrene or even death without immediate treatment.
• Intussusception is a medical emergency involving obstruction of the intestine. It can be fatal if not treated.
• It occurs most often in children.
• Symptoms include sudden, loud crying that comes and goes every 15 to 20 minutes, vomiting, and stool mixed with blood and mucus.

8. What can the Railways do to stop accidents?

Sub: Science and tech

Sec: Msc 

Context:

• On June 17, a train accident killed 10 people and injured over 40 near New Jalpaiguri in West Bengal, about 600 km from Kolkata.

More on news:

• The mishap was caused when a goods train hit the 13174 Down Agartala Sealdah Kanchanjunga Express.
• The Railway Board initially said the prima facie cause of the accident was that the loco pilot of the GFCJ container train (goods train), disregarded the Railways’ General and Subsidiary Rules (G&SR) and proceeded at normal speed which led to the collision with the Kanchanjunga Express.
• The much-touted anti-collision device, Kavach, was not installed on this route.

What is Signal Failure?

• Only 3% of the accidents in Indian Railways are due to “failure of equipment.”
• The station master issues a TA-912 notice, which authorizes loco pilots to cross a signal in red during signal failures, and a ‘line clear’ ticket, under the G&SR.
• The combination empowers the loco pilot to move forward.
• In this situation, the rule book says that the driver shall proceed cautiously, so as to stop short at any obstruction.
• If there is no prior indication that a signal is defective and the loco pilot suddenly encounters a red signal (stop sign) when the train is on the move, the loco pilot has to stop at the defective signal for a minute during day time, and for two minutes during night time.
• After this, the loco pilot is expected to proceed with extreme caution at a speed of 15 kmph.
• This procedure is not applicable when a ‘line clear’ ticket has been issued.
• Trains are not detained at wayside stations till the signals are set right.
• The only rule is that there should be only one train between two block sections at any given point of time.
• Another train can enter only after this train has left that block section.

What is Kavach?

• The Kavach is an indigenously developed Automatic Train Protection (ATP) system by the Research Design and Standards Organisation (RDSO) in collaboration with the Indian industry.
• The trials were facilitated by the South Central Railway to achieve safety in train operations across Indian Railways.
• It is a state-of-the-art electronic system with Safety Integrity Level-4 (SIL-4) standards.
• Kavach would have slowed down the freight train (it was moving at 45 kmph at the time of accident) as the automatic braking system would have become operational.
• It is meant to provide protection by preventing trains to pass the signal at Red (which marks danger) and avoid collision.
• It activates the train’s braking system automatically if the driver fails to control the train as per speed restrictions.
• According to the Railway Board, the Kavach system is operational in only 1,500 km. The entire Railways spans nearly 68,000 km.

What more needs to be done?

• One of the most important recommendations of the Kakodkar Committee is related to division of responsibilities.
• Three vital functions (rule-making, operations and the regulation) are all vested in the Railway Board. There is a need for an independent mechanism for safety regulation.
• The Committee recommends the creation of a statutory Railway Safety Authority with enough powers to have a safety oversight on the operational mode of Railways.

9. Patent filings credit Bharat Biotech as ‘inventor’ of Covaxin, omit ICMR

Sub: Science and tech

Sec: IPR 

Context:

• In Rajya Sabha, Health Ministry had claimed that intellectual property over Covaxin is “jointly owned” by ICMR and Bharat Biotech

Key Highlights:

• India’s first indigenously developed coronavirus vaccine, Covaxin, was a joint collaboration between the Indian Council of Medical Research (ICMR) and the Hyderabad-based Bharat Biotech International Limited (BBIL) with intellectual property (IP) rights jointly shared between the two organizations.
• Filings by the BBIL at patent offices in India, the United States and Europe suggest that only its scientists and personnel are credited as ‘inventors’ of the vaccine with no mention of ICMR scientists.
• The Minister’s statement said the ICMR would provide a “well characterized” virus strain for vaccine development, the BBIL would develop the final vaccine formulation and be given a “non-exclusive” license granted to commercialize the product within two years.
• The ICMR would also receive as royalty 5% of net sales to be remitted half-yearly.
• It was explicitly mentioned that the “..intellectual property over the product would be jointly owned by the ICMR and the BBIL.” The ICMR would also receive as royalty 5% of net sales to be remitted half-yearly.

Bharat Biotech and ICMR:

• Bharat Biotech is innovator of the process developed after procuring strain from the NIV through an agreed consideration between both the parties.
• The NIV was also responsible for testing for other variants.
• It is to be noted that while ICMR/NIV owns the animal challenge (clinical trials on animals) studies, Bharat Biotech owns the process development and new adjuvant added to the vaccine.

Patent laws in India:

• India’s patent laws allow both product and process patents.
• Product patents grant an inventor a monopoly over, say, a drug.
• Process patents bar competitors from making a similar drug using the same sequence of steps.

Indian patent act 1970:

• The Patents Act, 1970 is the legislation that till date governs patents in India. It first came into force in 1972.
• The Patents Act has been repeatedly amended: 1999, 2002, 2005, 2006.
• These amendments were required to make the Patents Act TRIPS-compliant.
• The major amendment was in 2005, when product patents were extended to all fields of technology like food, drugs, chemicals and microorganisms.
• The Indian Patent Act, 1970 strikes a balance between the rights of the applicant and his obligation to the society granting the rights.

10. States Seek Improvements in 50-Year Interest-Free Loan Scheme

Sub: Economy

Sec: Fiscal  Policy 

Key Highlights:

1. Union Finance Minister’s Assurance:

• Assured Consideration: Finance Minister Nirmala Sitharaman has assured that States’ ideas and inputs for the Union Budget 2024-25 will receive “due consideration.”
• Pre-Budget Consultation: This assurance was given during pre-Budget consultations on June 22, where State Ministers made several suggestions.

2. Scheme for Special Assistance to States for Capital Investment:

• Launch: The scheme was first launched in 2020-21.
• Current Allocation: The Union government has proposed to allocate ₹1.3 lakh crore for 2024-25, the same amount as in 2023-24.
• State Suggestions: Ministers from States suggested improvements to the scheme.
• Purpose: The scheme is intended to support capital investment projects in States.

3. Meeting Participants:

• Attendees: Finance Ministers from several States, Chief Ministers of Goa, Meghalaya, Mizoram, Nagaland, and Sikkim, and Deputy Chief Ministers of Bihar, Madhya Pradesh, Odisha, Rajasthan, and Telangana attended the meeting.

4. Financial Support to States:

• Timely Devolution: The Finance Minister emphasized the Union Government’s support to States through timely tax devolution.
• Grants and GST Compensation: Finance Commission grants and arrears of GST Compensation are provided to stimulate growth.

5. Conditional Loans:

• Untied Loans: Most of the loans under the scheme are untied.
• Conditional Allocation: A part of the allocation is conditional and linked to citizen-centric reforms and sector-specific capital projects.
• Criteria Fulfillment: States are encouraged to avail these loans by meeting the requisite criteria.

Summary: States have requested improvements to the 50-year interest-free loan scheme aimed at capital investments, with the Finance Minister assuring that their inputs will be considered for the Union Budget 2024-25. The scheme’s proposed allocation for 2024-25 remains ₹1.3 lakh crore. The meeting highlighted the Union Government’s commitment to support States through tax devolution, grants, and GST compensation, with an emphasis on fulfilling criteria for conditional loans.

Scheme for Special Assistance to States for Capital Investment

About:

• Financial Assistance: The scheme provides financial assistance to State Governments in the form of a 50-year interest-free loan for capital investment projects.
• Allocation for FY 2022-23: A total financial assistance of ₹1 lakh crore is allocated to states for the financial year 2022-23.
• Above Borrowing Ceiling: This loan is over and above the normal borrowing ceiling allowed to states for FY 2022-23 and must be spent within the same year.

Eligible Parts of the Scheme:

• New or Ongoing Projects: The scheme covers both new and ongoing projects, as well as settling pending bills for ongoing capital projects.
• Project Submission: States can submit projects of higher value than the allocated funds, indicating their preference or priority.

Different Parts of the Scheme:

• Capital Works: Priority is given to projects under the PM Gati Shakti Master Plan.
• PM Gati Shakti: Related expenditures under this initiative.
• PM Gram Sadak Yojana: Rural road development projects.
• Digitisation Incentives: Projects promoting digital infrastructure.
• Optical Fibre Cable: Enhancing digital connectivity.
• Urban Reforms: Initiatives for urban development.
• Disinvestment and Monetisation: Projects related to disinvestment and monetisation.

Exclusion:

• Small Projects: Projects with a capital outlay of less than ₹5 crore (₹2 crore for North East) are not eligible.
• Repair and Maintenance: Projects for repair and maintenance, irrespective of the capital outlay, are excluded.